
//////Replication Code for Initiative as Institution: How the Belt and Road Initiative Influences Chinese Firms' Participation in Global Value Chains//////

use "BRI_GVC.dta", clear 

xtset Firm Year

///Table 1: Summary statistic of varaibles///
xtreg GVC_intermediary_traders i.BRI##i.PC  i.Year , fe 

sum GVC_intermediary_traders if e(sample)
sum GVC_BEC_code if e(sample)
sum BRI PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize  Equity_Turnover Working_capital Industry_classification



///////Figure 1: The effect of BRI on GVC moderated by political connections/////
xtreg GVC_intermediary_traders i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize  Equity_Turnover Working_capital i.Industry_classification i.Year , fe 

estimates store ols_model 
coefplot ols_model, drop( 1.BRI 1.PC  *.Industry_classification *.Year _cons) ///
  scheme(s1mono) xline(0) level(95) ///
  coeflabels(1.BRI = "BRI" 1.PC = "PC" 1.BRI#1.PC = "BRI × PC" Operating_cycle = "Operating_cycle" Total_profit = "Total profit" Operating_costs_ratio = "Operating_costs_ratio" Return_on_assets ="Return_on_assets" Total_revenue = "Total_revenue" BoardSize ="BoardSize" Equity_Turnover ="Equity_Turnover" Working_capital = "Working capital Turnover Rate" ) ///
  xtitle("Coefficient Estimate" ) ytitle("Effects of GVC Measured by Intermediary Traders") ///
  title("") ///
  note("95% Confidence Intervals") ///
  graphregion(color(white)) ysize(20) xsize(45) saving(coefplot_gvc_traders, replace)
  

  
//////placbo test////////
//////Table 2  The effect of BRI on GVC moderated by political connections, placebo test ////
xtreg GVC_intermediary_traders i.BRI2011##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize  Equity_Turnover Working_capital i.Industry_classification i.Year , fe 

xtreg GVC_intermediary_traders i.BRI2012##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize  Equity_Turnover Working_capital i.Industry_classification i.Year , fe 

xtreg GVC_intermediary_traders i.BRI2014##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize  Equity_Turnover Working_capital i.Industry_classification i.Year , fe 

xtreg GVC_intermediary_traders i.BRI2015##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize  Equity_Turnover Working_capital i.Industry_classification i.Year , fe 

xtreg GVC_intermediary_traders i.BRI2016##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize  Equity_Turnover Working_capital i.Industry_classification i.Year , fe 



////////Figure 2: The effect of BRI on GVC moderated by political connections, robustness checks////
xtreg GVC_BEC_code i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize Equity_Turnover Working_capital i.Industry_classification i.Year , fe 
estimates store ols_model_1 
coefplot ols_model, drop( 1.BRI 1.PC  *.Industry_classification *.Year _cons) ///
  scheme(s1mono) xline(0) level(95) ///
  coeflabels(1.BRI = "BRI" 1.PC = "PC" 1.BRI#1.PC = "BRI × PC" Operating_cycle = "Operating Cycle" Total_profit = "Total Profit" Operating_costs_ratio = "Operating Costs Ratio" Return_on_assets ="Return on Assets" Total_revenue = "Total Revenue" BoardSize ="Board Size" Equity_Turnover ="Equity Turnover" Working_capital = "Working Capital Turnover Rate" ) ///
  xtitle("Coefficient Estimate" ) ytitle("Effects of GVC Measured by BEC Product Code") ///
  title("") ///
  note("95% Confidence Intervals") ///
  graphregion(color(white)) ysize(20) xsize(45) saving(coefplot_gvc_BEC, replace)



/////Exploration of mechanism/////  
//Table 3: The effect of BRI on GVC moderated by various levels of political connection//
xtreg GVC_intermediary_traders i.BRI##i.PCLevel i.Industry_classification i.Year , fe
xtreg GVC_intermediary_traders i.BRI##i.PCLevel Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize Equity_Turnover Working_capital i.Industry_classification i.Year , fe
xtreg GVC_BEC_code i.BRI##i.PCLevel i.Industry_classification i.Year , fe
xtreg GVC_BEC_code i.BRI##i.PCLevel Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize Equity_Turnover Working_capital i.Industry_classification i.Year , fe	   







//////Appendix: Initiative as Institution: How the Belt and Road Initiative Influences Chinese Firms' Participation in Global Value Chains//////


//////2. Correlations among Variables//////
//Table 2: Correlation with baseline measure of GVC//
corr GVC_intermediary_traders BRI PC BRI_PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize Equity_Turnover Working_capital Industry_classification

//////Table 3: Correlation with alternative measure of GVC//
corr GVC_BEC_code BRI PC BRI_PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize Equity_Turnover Working_capital  Industry_classification


///////3. Full Results for Baseline analysis//////
/////Table 4: The effect of BRI on GVC moderated by political connections/////
xtreg GVC_intermediary_traders i.BRI##i.PC i.Industry_classification i.Year , fe
xtreg GVC_intermediary_traders i.BRI##i.PC Operating_cycle i.Industry_classification i.Year , fe
xtreg GVC_intermediary_traders i.BRI##i.PC Operating_cycle Total_profit i.Industry_classification i.Year , fe
xtreg GVC_intermediary_traders i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio i.Industry_classification i.Year , fe
xtreg GVC_intermediary_traders i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets i.Industry_classification i.Year , fe
xtreg GVC_intermediary_traders i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue i.Industry_classification i.Year , fe

xtreg GVC_intermediary_traders i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize i.Industry_classification i.Year , fe

xtreg GVC_intermediary_traders i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize  Equity_Turnover  i.Industry_classification i.Year , fe 

xtreg GVC_intermediary_traders i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize  Equity_Turnover Working_capital i.Industry_classification i.Year , fe 



/////4. Baseline analysis with Year Trend//////
/////////Table 5: The effect of BRI on GVC moderated by political connections with year trend//////
xtreg GVC_intermediary_traders i.BRI##i.PC Year i.Industry_classification i.Year , fe
xtreg GVC_intermediary_traders i.BRI##i.PC Operating_cycle Year i.Industry_classification i.Year , fe
xtreg GVC_intermediary_traders i.BRI##i.PC Operating_cycle Total_profit Year i.Industry_classification i.Year , fe
xtreg GVC_intermediary_traders i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio Year i.Industry_classification i.Year , fe
xtreg GVC_intermediary_traders i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Year i.Industry_classification i.Year , fe
xtreg GVC_intermediary_traders i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue Year i.Industry_classification i.Year , fe
xtreg GVC_intermediary_traders i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize Year i.Industry_classification i.Year , fe
xtreg GVC_intermediary_traders i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize  Equity_Turnover Year i.Industry_classification i.Year , fe 
xtreg GVC_intermediary_traders i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize  Equity_Turnover Working_capital Year i.Industry_classification i.Year , fe 




///5. Baseline Analysis Using Clustered Standard Errors///
//Table 6: The effect of BRI on GVC moderated by political connection, with standard errors clustered by firm //
xtreg GVC_intermediary_traders i.BRI##i.PC i.Industry_classification i.Year , fe cluster(Firm)
xtreg GVC_intermediary_traders i.BRI##i.PC Operating_cycle i.Industry_classification i.Year , fe cluster(Firm)
xtreg GVC_intermediary_traders i.BRI##i.PC Operating_cycle Total_profit i.Industry_classification i.Year , fe cluster(Firm)
xtreg GVC_intermediary_traders i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio i.Industry_classification i.Year , fe cluster(Firm)
xtreg GVC_intermediary_traders i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets i.Industry_classification i.Year , fe cluster(Firm)
xtreg GVC_intermediary_traders i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue i.Industry_classification i.Year , fe cluster(Firm)
xtreg GVC_intermediary_traders i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize  i.Industry_classification i.Year , fe cluster(Firm)
xtreg GVC_intermediary_traders i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize Equity_Turnover  i.Industry_classification i.Year , fe cluster(Firm)
xtreg GVC_intermediary_traders i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize  Equity_Turnover Working_capital i.Industry_classification i.Year , fe cluster(Firm)



//////6. Full Results for Placebo Test////////
/////Table 7: The effect of BRI on GVC moderated by political connections, placebo test ////
xtreg GVC_intermediary_traders i.BRI2011##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize  Equity_Turnover Working_capital i.Industry_classification i.Year , fe 

xtreg GVC_intermediary_traders i.BRI2012##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize  Equity_Turnover Working_capital i.Industry_classification i.Year , fe 

xtreg GVC_intermediary_traders i.BRI2014##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize  Equity_Turnover Working_capital i.Industry_classification i.Year , fe 

xtreg GVC_intermediary_traders i.BRI2015##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize  Equity_Turnover Working_capital i.Industry_classification i.Year , fe 

xtreg GVC_intermediary_traders i.BRI2016##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize  Equity_Turnover Working_capital i.Industry_classification i.Year , fe 




/////7. Full Results for Robustness Checks Using Alternative Response Variable//////
//Table 8: The effect of BRI on GVC moderated by political connections, robustness checks//
xtreg GVC_BEC_code i.BRI##i.PC i.Industry_classification i.Year , fe 
xtreg GVC_BEC_code i.BRI##i.PC Operating_cycle i.Industry_classification i.Year , fe 
xtreg GVC_BEC_code i.BRI##i.PC Operating_cycle Total_profit i.Industry_classification i.Year , fe 
xtreg GVC_BEC_code i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio i.Industry_classification i.Year , fe 
xtreg GVC_BEC_code i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets i.Industry_classification i.Year , fe 
xtreg GVC_BEC_code i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue i.Industry_classification i.Year , fe 
xtreg GVC_BEC_code i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize i.Industry_classification i.Year , fe 
xtreg GVC_BEC_code i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize Equity_Turnover i.Industry_classification i.Year , fe 
xtreg GVC_BEC_code i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize Equity_Turnover Working_capital i.Industry_classification i.Year , fe 



//////8. Robustness Checks Using Alternative Response Variable and Clustered Standard Errors 
//Table 9: The effect of BRI on GVC moderated by political connection, robustness checks, with standard errors clustered by firm//
xtreg GVC_BEC_code i.BRI##i.PC i.Industry_classification i.Year , fe cluster(Firm)
xtreg GVC_BEC_code i.BRI##i.PC Operating_cycle i.Industry_classification i.Year , fe cluster(Firm) 
xtreg GVC_BEC_code i.BRI##i.PC Operating_cycle Total_profit i.Industry_classification i.Year , fe cluster(Firm)
xtreg GVC_BEC_code i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio i.Industry_classification i.Year , fe cluster(Firm)
xtreg GVC_BEC_code i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets i.Industry_classification i.Year , fe cluster(Firm) 
xtreg GVC_BEC_code i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue i.Industry_classification i.Year , fe cluster(Firm) 
xtreg GVC_BEC_code i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize i.Industry_classification i.Year , fe cluster(Firm) 
xtreg GVC_BEC_code i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize Equity_Turnover i.Industry_classification i.Year , fe cluster(Firm) 
xtreg GVC_BEC_code i.BRI##i.PC Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize Equity_Turnover Working_capital i.Industry_classification i.Year , fe cluster(Firm) 




////9.	Full Results for Exploration of Mechanism/////  
//Table 10: The effect of BRI on GVC moderated by various levels of political connection, GVC measured by intermediary trader //
xtreg GVC_intermediary_traders i.BRI##i.PCLevel i.Industry_classification i.Year , fe
xtreg GVC_intermediary_traders i.BRI##i.PCLevel Operating_cycle i.Industry_classification i.Year , fe
xtreg GVC_intermediary_traders i.BRI##i.PCLevel Operating_cycle Total_profit i.Industry_classification i.Year , fe
xtreg GVC_intermediary_traders i.BRI##i.PCLevel Operating_cycle Total_profit Operating_costs_ratio i.Industry_classification i.Year , fe
xtreg GVC_intermediary_traders i.BRI##i.PCLevel Operating_cycle Total_profit Operating_costs_ratio Return_on_assets i.Industry_classification i.Year , fe
xtreg GVC_intermediary_traders i.BRI##i.PCLevel Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue i.Industry_classification i.Year , fe
xtreg GVC_intermediary_traders i.BRI##i.PCLevel Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize i.Industry_classification i.Year , fe
xtreg GVC_intermediary_traders i.BRI##i.PCLevel Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize  Equity_Turnover  i.Industry_classification i.Year , fe
xtreg GVC_intermediary_traders i.BRI##i.PCLevel Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize  Equity_Turnover Working_capital i.Industry_classification i.Year , fe



////Table 11: The effect of BRI on GVC moderated by various levels of political connection, GVC measured by BEC product codes///
xtreg GVC_BEC_code i.BRI##i.PCLevel i.Industry_classification i.Year , fe
xtreg GVC_BEC_code i.BRI##i.PCLevel Operating_cycle i.Industry_classification i.Year , fe	 
xtreg GVC_BEC_code i.BRI##i.PCLevel Operating_cycle Total_profit i.Industry_classification i.Year , fe	   
xtreg GVC_BEC_code i.BRI##i.PCLevel Operating_cycle Total_profit Operating_costs_ratio i.Industry_classification i.Year , fe	   
xtreg GVC_BEC_code i.BRI##i.PCLevel Operating_cycle Total_profit Operating_costs_ratio Return_on_assets i.Industry_classification i.Year , fe	 
xtreg GVC_BEC_code i.BRI##i.PCLevel Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue i.Industry_classification i.Year , fe	
xtreg GVC_BEC_code i.BRI##i.PCLevel Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize i.Industry_classification i.Year , fe	   
xtreg GVC_BEC_code i.BRI##i.PCLevel Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize Equity_Turnover  i.Industry_classification i.Year , fe	   
xtreg GVC_BEC_code i.BRI##i.PCLevel Operating_cycle Total_profit Operating_costs_ratio Return_on_assets Total_revenue BoardSize Equity_Turnover Working_capital i.Industry_classification i.Year , fe	 

















